- Bitwise CIO highlights XRP resilience as inflows persist despite market pressure
- XRP ETFs deepen liquidity, supporting institutional participation during cautious market conditions
- Sustained XRP inflows signal structural demand rather than speculative trading behavior
Bitwise chief investment officer (CIO) Matt Hougan delivered a pointed assessment about XRP activity in a recent podcast. Appearing alongside Ripple CTO, David Schwartz, Huogan stated that XRP ETFs have been much better received than Ethereum was.
He highlighted that XRP ETF demand has remained firm even as broader digital asset sentiment weakened. His remarks positioned XRP as an outlier during a phase when investors generally reduced exposure.
Rather than fading with the market, XRP continued attracting consistent capital interest. Recent data from Soso Value supported his position and reinforced the credibility of his assessment.
According to the statistics, daily net inflows into XRP investment products reached $13.21M during the observed period. Additionally, cumulative net inflows climbed to $1.07B, signaling sustained allocation rather than episodic trades. Such figures stood out as several major assets, including BTC and ETH, recorded limited or negative flows.
Trading activity also remained steady across XRP-linked products. Total value traded reached $58.90M, reflecting continued engagement despite declining market participation elsewhere. This level of activity suggested confidence rather than defensive positioning.
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Hougan emphasized that capital persistence during downturns rarely appears without structural backing. Total net assets tied to XRP ETFs have now reached $1.21B, representing 0.98% of XRP’s total market capitalization.
Consequently, exposure remained meaningful without introducing liquidity stress. Huogan stressed that the steady inflows into XRP ETFs signify that “XRP is already understood by a relatively large number of people who are conditioned and ready for it,” suggesting that “there will be long and ongoing demand.”
ETF Liquidity Reinforces Institutional Market Structure
Beyond capital flows, attention shifted toward ETF-driven liquidity supporting XRP markets. According to Hougan, expanding XRP ETF activity directly enhances liquidity in the underlying market. He explained that deeper liquidity forms the operational foundation institutions require before scaling exposure.
As ETF participation increases, liquidity continues to reinforce itself through higher engagement. This pattern reflects structural development rather than speculative momentum. Hougan highlighted that options growth around ETFs may further strengthen this cycle.
Importantly, ETF adoption does not isolate investors from the broader ecosystem. Huogan added that many ETF participants will eventually acquire XRP directly and engage on-chain. This behavior mirrors historical trends observed in crypto markets and precious metals ETFs.
As a result, ETF growth often expands ecosystem participation rather than replacing it. Improved liquidity also enhances execution efficiency and reduces market friction.
These conditions typically lower volatility risks that deter large capital deployments. Analysts noted that liquidity improvements alone do not guarantee sustained price appreciation. They emphasized that regulatory clarity and macroeconomic conditions remain influential. Still, Hougan maintained that current developments signal infrastructure taking shape.
He described the process as deliberate rather than reactionary. XRP maintained inflow stability without abrupt volatility spikes. This consistency reinforced perceptions of measured confidence among investors.
Market discussions increasingly framed XRP as structurally positioned rather than momentum-driven. Overall, the combination of steady inflows and ETF-supported liquidity strengthened Hougan’s core message. The data aligned closely with his view that XRP demand reflects the market structure being built.
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